Newsom Vetoes Down-Payment Assistance Bill for Illegal Immigrant Homebuyers

California Gov. Gavin Newsom delivers remarks to reporters at Mather Airport in Mather, California, on Sept. 13, 2021. Justin Sullivan/Getty Images

Citing budget constraints and limited funding in the state’s housing assistance programs, California Gov. Gavin Newsom vetoed a bill Sept. 6 that would have expanded eligibility to include illegal immigrants.

“Given the finite funding available for [California’s Housing and Finance Agency] programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” Newsom said in a veto letter sent to the Assembly.

The governor has repeatedly used concerns about the budget to veto bills over the past two years.

In 2023, he rejected about 15 percent of bills sent to his desk, and 50 veto letters contained verbiage explaining the need to preserve resources due to the state’s fiscal condition.

Assembly Bill 1840, introduced by Assemblyman Joaquin Arambula, passed the Legislature Aug. 28 and would have prohibited the California Dream for All and other housing assistance programs that provide down payment money for first-time homebuyers from excluding applicants based solely on immigration status.

Assemblyman Joaquin Arambula, author of Assembly Bill 1840, presents the proposal for a final vote on Aug. 28, 2024. Travis Gillmore/The Epoch Times

“The social and economic benefits of home ownership should be accessible to all, regardless of immigration status,” Arambula said on the Assembly floor before lawmakers voted. “We need to remind ourselves that we are a nation of immigrants. This is a bill about fairness.”

The bill passed Aug. 27 in the Senate on a vote of 25–14—with some Democrats opposing the proposal—and on a vote of 53–18 in the Assembly the following day on a strictly partisan vote.

One senator who voted against the bill declared victory following the governor’s veto.

Sen. Kelly Seyarto speaks at a press conference opposing Assembly Bill 1955 in front of the Capitol on June 13, 2024. Travis Gillmore/The Epoch Times

“Thanks to your efforts the governor has vetoed AB 1840,” Sen. Kelly Seyarto posted on X. “The state simply cannot afford this type of reckless spending.”

The Republican minority leader in the Assembly expressed gratitude for all who spread the word about AB 1840 and to those who voiced concern about the bill.

“The media, the public, and [Assembly Republicans] exposed this crazy idea,” Assemblyman James Gallagher posted on X. “Thank you to everyone who weighed in!”

A colleague in the Assembly said the bill should have been rejected by the Legislature.

“This never should have reached his desk in the first place, but I appreciate the governor’s veto of AB 1840,” Assemblyman Josh Hoover posted on X.

State lawmakers created the Dream for All program through legislative actions in 2021 and 2022 that ordered state agencies to develop a framework to boost homeownership for  low- and middle-income Californians.

The newly established program provides up to 20 percent of purchase price—with a maximum of $150,000—in what’s known as a shared appreciation loan where homeowners repay the borrowed funds and a portion of the home’s appreciated value when they sell the property.

When the program first offered loans in 2023, applicants overwhelmed the system, and the $300 million allocated was depleted within two weeks of launch.

One Assembly Democrat thanked the author for introducing the measure and said more assistance is needed for all people struggling to afford a home.

“This bill ... humanizes the large population that contributes tremendously to our robust economy,” Assemblyman Eduardo Garcia said while debating the bill Aug. 28. “This is a simple bill ...  adding a human element to statute ... that’s long overdue.”

Another Assembly member highlighted the billions of dollars in taxes paid by hundreds of thousands of illegal immigrants in California and called the bill a fair approach to distributing assistance.

“People that qualify ... should have access to the very programs that they are contributing to funding,” Assemblywoman Wendy Carrillo said before voting for the bill Wednesday.

Some critics of the bill said the state’s substantial budget deficit and limited amount of funds in the housing program are reasons citizens should be prioritized over illegal immigrants.

“It’s not fair,” Assemblyman Tom Lackey, a Republican, said while debating the bill Aug. 28. “This is not the right path. It defies accountability.”

Another vocal critic argued on the Assembly floor that the bill is encouraging prospective migrants to disregard federal immigration laws and is unfair to those who entered the country legally.

Assemblyman Bill Essayli addresses the Legislature on the floor of the Assembly at the Capitol in Sacramento, Calif., Aug. 31, 2024. Travis Gillmore/The Epoch Times

“It really is offensive,” Assemblyman Bill Essayli said while urging lawmakers to vote down the bill. “I really feel it’s a slap in the face to legal immigrants when we incentivize the breaking of our laws and the normalizing of being in this country unlawfully.”

One lawmaker, the granddaughter of legal immigrants, said the state’s programs that provide free health care and food, among other things, are incentivizing illegal immigration.

“Immigrants look to California’s current policies like a giant welcome sign,” Republican Assemblywoman Kate Sanchez said while debating the bill. “This isn’t rocket science. If you’re giving out free stuff, more people are going to come.”

Other bills currently being considered by the governor also relate to illegal immigrants—including one that would provide unemployment benefits and another that would allow universities to hire undocumented students.

After signing five bills and vetoing one, Newsom has 985 more proposals on his desk. All decisions must be made and presented to the Legislature by the Sept. 30 deadline.